Canada Looks to Boost Trade Relations Amid Economic Uncertainty

Amid economic uncertainty in Canada caused in part by U.S. tariffs, Nova Scotia has made significant strides in reducing trade barriers with five provinces. Premier Tim Houston introduced the Free Trade and Mobility within Canada Act in February, aiming to foster mutual recognition of goods, services, and labor mobility between Nova Scotia and other provinces.

The act empowers the province to eliminate barriers to trade and investment with other provinces that reciprocate the gesture. In a recent news release, it was announced that Ontario, Alberta, British Columbia, Manitoba, and Prince Edward Island have all taken steps to enhance trade and investment opportunities between provinces.

The federal government is also expected to follow suit, with Prime Minister Mark Carney pledging to introduce federal legislation targeting barriers under Ottawa’s jurisdiction by Canada Day. These barriers could range from energy efficiency standards to environmental and regulatory assessments on major projects.

The barriers being removed by Nova Scotia focus on three key areas:

• Ending Canadian Free Trade Agreement exemptions that restrict interprovincial trade with Nova Scotia.
• Allowing goods or services legally sold, used, or provided in another province to be sold, used, and provided in Nova Scotia without having to meet additional requirements.
• Removing labor mobility barriers by streamlining the process for obtaining equivalent licenses within 10 business days.

The removal of trade barriers with Alberta and P.E.I. goes into effect immediately, while barriers with the other provinces and federal government will be eliminated upon proclamation of their equivalent legislation.

In 2023, Nova Scotia’s interprovincial exports amounted to nearly $29 billion, making up about half of the province’s total exports and contributing approximately 17% to Nova Scotia’s GDP. It’s worth noting that over $530 billion worth of goods and services move across provincial and territorial borders every year, equivalent to 20% of Canada’s GDP.

These efforts to strengthen trade relations among provinces are crucial in light of the economic challenges facing Canada. By reducing trade barriers and promoting mutual recognition of goods, services, and labor, Nova Scotia and other provinces aim to boost economic growth and stability in the country.